Progressive to settle third-party data breach class action for $3.25mn

By Isha Marathe

Feb 14 - (The Insurer) - Three hundred and fifty thousand plaintiffs asked an Ohio judge on Tuesday for final approval to a $3.25mn settlement in a data breach class action against Progressive.

The case Okonski v. Progressive Casualty Insurance Company in the United States District Court for the Northern District of Ohio stemmed from a data breach that occurred in 2021 at one of Progressive's third-party vendors.

In August 2023, 350,000 plaintiffs filed a class action alleging that the insurer failed to protect consumer information and personally identifiable information including Social Security numbers and financial data in the period between May 2021 and May 2023, by neglecting to implement thorough cybersecurity protections.

While Progressive has denied any wrongdoing, it acquiesced to the settlement agreement.

Under the terms of the deal, class counsel will be awarded attorneys’ fees in the amount of thirty-three percent of the settlement fund – a little over $1.07mn – and reimbursement of documented costs and expenses in the amount of $22,879 to be paid from the fund, according to the final order.

Should the class members opt in for a settlement claim, they will be permanently barred and enjoined from instituting, maintaining, or prosecuting, either directly or indirectly, any lawsuit or other proceeding that asserts any claims released under the agreement, as per the final order.